Youth and Hi-tech in Israel.
(photo credit: ING IMAGE/ASAP)
The New York-based SeatGeek, one of the world’s leading online ticket marketplaces, has acquired Israeli ticketing software company Top- Tix in a $56 million deal.
By purchasing the Israeli firm, SeatGeek is positioning itself to become one of the largest primary ticketers in the world, with a goal of replacing industry incumbents as a premiere sales platform for ticket license holders, the company announced on Tuesday.
The acquisition, which was the largest in Seat- Geek’s history, was made possible due to a $57m.
Series D investment round in the New York company led by Glynn Capital Management, in collaboration with a group of investors.
“TopTix has by far the best back-end primary ticketing technology in the world, and we humbly believe that at SeatGeek we have created what is easily the best user experience,” said SeatGeek co-founder Jack Groetzinger. “Combining these two platforms together allows SeatGeek to deliver the most powerful – and only open – ticketing platform in the industry. We’re thrilled to be working with the team from TopTix to continue to build our open ecosystem that is transforming the way people access live events.”
The Karmiel-based TopTix, which will operate as a SeatGeek subsidiary, has provided its ticketing software to more than 500 institutions, processing 80 million tickets per year in 16 countries, a joint statement from the companies said.
TopTix clients range from museums and theaters to festivals and sports teams, including organizations such as the Royal Dutch Football Association, Illinois’s Ravinia Festival and multiple British soccer clubs.
The acquisition of TopTix will serve to power the expansion of SeatGeek Open, the New York company’s primary ticketing platform launched in August 2016. SeatGeek Open enables artists and teams to sell tickets directly within apps and websites where fans spend time browsing, the statement explained. By selling tickets through places like e-commerce websites, travel tools and messaging apps, artists and teams will be able to reach more fans, the statement added.
“As anyone who has spent time in the entertainment industry knows, ticketing is a pain point for teams, artists, venues, and their fans,” said David Glynn, managing director of Glynn Capital. “We believe that SeatGeek, strengthened by TopTix, is providing a better option through an innovative business model and bestin- class technology, and we think that’s the key to turning a massive industry on its head.”
Although SeatGeek has just now acquired Top- Tix, the two have worked together before, with TopTix providing the technology for SeatGeek’s first primary ticketing client, Sporting Kansas City of Major League Soccer, the companies said.
Thus far, the software has increased Sporting KC’s online ticket sales by 61% compared to last season, and quadrupled the amount of mobile purchasing the team saw with its previous ticket provider, the firms added.
“Our teams share a passion for innovation and a mission to build long-term partnerships,” said Eli Dagan, co-founder of TopTix. “I’m thrilled that together we will continue to build a product tailored to the needs of all our clients around the world.”